Publish: 09:59, 23 Jun, 2025

Tesla launches Robotaxi pilot in Austin with $4.20 rides, big promises

Online Desk
Tesla launches Robotaxi pilot in Austin with $4.20 rides, big promises
Photo: Reuters

After years of bold promises and repeated delays, Tesla has officially launched its long-awaited robotaxi pilot program in Austin, Texas. The limited rollout marks the electric carmaker’s first real-world test of fully autonomous ride-hailing services—albeit under cautious conditions, reports AP.

Beginning Sunday, Tesla deployed 10 to 12 self-driving vehicles operating within a geofenced area of Austin. Each ride costs a flat fee of $4.20, a nod to Elon Musk’s trademark blend of tech futurism and internet humor. Musk confirmed the launch on X, writing, “The @Tesla_AI robotaxi launch begins in Austin this afternoon with customers paying a $4.20 flat fee!”

The pilot represents a key milestone for Tesla, following Musk’s 2019 prediction that a million robotaxis would be on the road “next year”—a claim he repeated annually without realization. Most recently, he said Tesla would reach that goal by 2024. So far, only a dozen vehicles are operational, each remotely monitored with a human passenger present to intervene if needed.

Despite the modest scale, Musk has promised rapid expansion. “We’ll have hundreds of thousands, if not a million robotaxis next year,” he told investors. But industry observers remain skeptical.

“How quickly can he scale this to a real network?” asked Garrett Nelson, an analyst at CFRA. “It’s starting with just a dozen vehicles—very small.”

Tesla’s launch comes amid intense competition and internal pressure. Waymo, a major rival in the autonomous vehicle space, recently celebrated its 10 millionth paid ride using a sensor suite that includes lidar, radar, and cameras. In contrast, Tesla relies exclusively on a camera-only system, a point of frequent criticism.

The company is also facing political headwinds. Musk’s controversial public statements and political spats, including a high-profile clash with President Biden, have triggered consumer boycotts and contributed to declining sales. Tesla’s stock has experienced turbulence, shedding $150 billion in value earlier this year. Still, it remains significantly up from a decade ago, closing Friday at $322—a steep climb from around $18 in 2015.

Critics have long questioned the branding of Tesla’s “Full Self-Driving” (FSD) system, which is not fully autonomous under current legal definitions. The software has been scrutinized by federal regulators and the Department of Justice over safety concerns and potential misleading marketing. Some lawsuits have been dismissed, including a case where a judge ruled plaintiffs failed to prove Musk knowingly made false statements.

Nonetheless, Musk remains confident that Tesla’s refined FSD software will safely power a nationwide robotaxi rollout. His strategy includes enabling existing Tesla owners to add their vehicles to the robotaxi fleet via an over-the-air software update, allowing them to earn income while their cars would otherwise be idle.

“Instead of sitting in a parking lot, your car could be making you money,” Musk said. “You’ll be able to add or remove your car from the fleet whenever you want—like Airbnb for vehicles.”

Musk believes Tesla’s sensor-light, software-heavy approach gives it a significant edge. “We’ll have, I don’t know, 99% market share or something ridiculous,” he joked during a recent investor call.

While skepticism remains high, some analysts are cautiously optimistic. Dan Ives of Wedbush Securities noted, “This time Musk may actually pull it off because of Tesla’s ability to scale quickly.”

Even longtime doubters acknowledge Musk’s record of disrupting industries. “His timelines are always aggressive,” said tech analyst Goldstein, “but he does have a habit of eventually delivering what seems impossible.”

Whether Tesla’s robotaxis can move from a dozen test cars in Austin to a nationwide fleet remains uncertain. But for now, the experiment is officially on the road—at $4.20 a ride.

Bd-pratidin English/ Jisan

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